What does "Sell Stops Below" 1.2810 recommendation mean?

Hi,

what does this mean?

1.2810(M) |Hourly Low Aug 30 |Sell Stops Below

I understand what Sell a Break means... but what does this mean? as I'm typing the break just occured but still I'd like to understand this.

Anyone know?

that means that stops are below 1.2810 area and the type of stops are SELL stops; if your long then you must sell to get out Thus the SELL term.

a "stop" is a market order.

a stop at 1.2000 is a market order that is triggered when the market trades at 1.2000.

a "sell" stop at 1.2000 is a market order to sell that is triggered when the market trades at 1.2000.

I'm still missing something here... since this is under their recommendation column (from FXCM news plugin), does this mean they recommend to Sell below 1.2810 or to buy?

I guess Sell but I want to be 100% sure I understand this thing.

For any Service to post a notice like "Sell Stops @ 1.2810" a couple of things would be required.
1) The price would have to presently Above that Level.
2) They have access to current Market Statistics.

Since the Market Statistics do not provide "Who has placed their Sell Stops @ 1.2810" we do not know whether they are Orders to Close Long Positions or Enter Short Positions or a combination of both.

What we can expect though is that if the Price falls & breaches 1.2810, there will be a number of Sell Orders Triggered which will probably drop the market even farther.

A word of caution. These Orders can be filled rather quickly and, after a brief moment of volatilty, the Price may either languish or Bounce back just as fast as the Bulls may have chased the price through the stops just so they could Buy more at a Lower Price.

thanks Bemac,

this is the explanation I was looking for

market was above 1.2810 at the time the recommendation was made. maybe 1.2830, I can't remember.

Hello ,

If the market price is 1.2550 you would like to sell 1.2540 which is below mrket price you use SELL STOP PRICE -1.2540.

Were and when do you use it :
1. News Trader place BUY STOP ( i.e buing above market price ) SELLL STOP ( i.e selling below the market level)
In an event of good or bad data price move either up or down anywere between 10 to 100 pip depending on various factors. So in a event of good data price will go up triggering the buy stop , in event of bad data price will go down triggering the sell stop.

2. Techincal Traders : These traders determin support and resistance levels and expect it to bounce from the R & S levels . If these these resistance or support levels are broken , price is expected further up or down.

QUOTE L recommend to Sell below 1.2810 or to buy?

If price bouces off 1.2810 BUY ,if breaks 1.2810 SELL.

Hope this helps

Warm Regards

Ganesh

Here is a diagram that I keep near my trading workstation. Hopefully, it can be of use to someone else...